Running a small business comes with plenty of moving parts. You’re focused on serving customers, managing employees, paying bills, growing your business, and keeping everything running smoothly.
Insurance may not always be at the top of your list—but when something unexpected happens, having the right coverage can make a significant difference.
That’s where a Business Owners Policy, or B.O.P., can come in.
What Is a Business Owners Policy?
A Business Owners Policy is a package designed to combine several common types of business insurance into one policy.
A B.O.P. typically combines commercial property coverage and general liability coverage, with other coverages potentially available depending on the insurance company, your business, and your specific needs.
Think of it as a foundation for protecting your business against some of the risks that come with owning and operating a company.
What Can a B.O.P. Cover?
Every B.O.P. is different, so it’s important to review the actual policy and available endorsements. However, a B.O.P. may provide protection for areas such as:
Your Business Property
Your business depends on more than just your employees. You may have computers, office furniture, inventory, equipment, tools, signs, and other property that would be expensive to replace.
Commercial property coverage can help protect covered business property against certain covered losses.
General Liability
What happens if a customer slips and falls at your business?
Or perhaps your business accidentally damages someone else’s property.
General liability coverage can help protect your business against certain claims involving bodily injury, property damage, and personal and advertising injury, subject to the policy’s terms and exclusions.
Business Income
A covered loss doesn’t necessarily stop affecting your business when the physical damage occurs.
If your business has to temporarily close because of covered property damage, business income coverage may help with certain lost income and continuing expenses, depending on the policy.
For example, imagine a fire damages your storefront and you have to close temporarily while repairs are made. The physical damage is one problem—but keeping your business financially afloat during the interruption can create another.
Business interruption coverage is generally tied to covered physical loss or damage, so the specific policy language matters.
Who Might Need a B.O.P.?
B.O.P. coverage is commonly designed with small and midsized businesses in mind.
Depending on the insurance company’s eligibility requirements, it may be an option for businesses such as:
- Retail stores
- Restaurants and cafés
- Professional offices
- Contractors
- Salons and barbershops
- Real estate offices
- Medical offices
- Wholesalers
- Small manufacturing businesses
- Other qualifying small businesses
However, not every business qualifies for a B.O.P., and some businesses may need additional or different types of commercial insurance.
Your business operations, location, building, equipment, employees, and other factors can all influence what coverage you need.
What Doesn’t a B.O.P. Cover?
One of the biggest misconceptions about a B.O.P. is that it covers everything your business could possibly face.
It doesn’t.
Depending on your business, you may need additional policies or endorsements for exposures such as:
- Commercial auto
- Workers’ compensation
- Professional liability or errors and omissions
- Cyber liability
- Employment practices liability
- Umbrella or excess liability
- Equipment breakdown
- Flood
- Other industry-specific risks
For example, if your employees drive company vehicles, a B.O.P. shouldn’t be assumed to provide the commercial auto coverage your business needs.
The goal isn’t simply to have a B.O.P.—it’s to have a business insurance program that actually fits the way your company operates.
Why Consider a B.O.P.?
One of the advantages of a B.O.P. is convenience. Instead of purchasing certain common coverages separately, qualifying businesses may be able to combine them into one package.
Bundling coverage can also sometimes be more cost-effective than purchasing the same types of coverage separately, although pricing depends on the business and policy.
More importantly, a B.O.P. can give a small business owner a starting point for addressing some of the most common property and liability risks.
Your Business Changes—Your Insurance Should Too
Your insurance needs today may not be the same as they were when you first opened your doors.
Maybe you’ve:
- Added employees
- Purchased new equipment
- Increased your inventory
- Moved to a larger location
- Started selling products online
- Added new services
- Purchased a building
- Begun using company vehicles
- Expanded into new markets
These changes can affect your insurance needs.
That’s why it’s a good idea to review your business insurance periodically and whenever there’s a significant change in your operations.
Protect What You’ve Built
You’ve invested time, money, and energy into building your business. The right insurance coverage can help you prepare for the unexpected and protect the business you’ve worked so hard to create.
At The Sterling Insurance Group, we understand that no two businesses are exactly alike. As an independent insurance agency serving Plano and surrounding Texas communities, our goal is to help business owners understand their coverage options and find an insurance program that fits their individual needs.
If you’re starting a business, growing an existing company, or simply wondering whether your current business insurance still makes sense, we’re here to help.
Have questions about Business Owners Policy insurance? Contact The Sterling Insurance Group at (972) 964-4825 to discuss your business and coverage options.
Insurance coverage varies by policy, business, carrier, and individual circumstances. This article is for general informational purposes only and does not modify or replace the terms of an insurance policy. Contact your insurance professional to discuss your specific coverage needs.